30s Summary

Blockchain data provider Nansen is branching into analytics for Bitlayer, a Bitcoin Layer-2 mechanism known for enabling Ethereum-style smart contracts on Bitcoin. With this move, Nansen plans to improve decision-making on Bitcoin layer 2s by offering real-time data. However, BitVM, the computing paradigm Bitlayer is based on, would need a separate auxiliary network to handle transaction volume. Since Bitcoin owns about 60% of the digital asset market’s value, this step could potentially unveil unmatched liquidity and value for decentralized projects.

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Nansen, a blockchain data provider, revealed that it’s set to offer analytics to Bitcoin layer-2 Bitlayer. This move signifies Nansen’s first foray into this space.

Bitlayer, a mechanism built on the BitVM computing paradigm, is known for facilitating Ethereum-style smart contracts on Bitcoin. In July, it raised $11 million in funding led by Franklin Templeton.

Nansen enables users to view real-time blockchain network activity. By providing data and analytics, it aims to streamline decision-making in Bitcoin layer 2s, according to an announcement the company made via email.

Adding smart contract support — which has been a substantial part of networks like Ethereum but largely non-existent on Bitcoin — paves the way for decentralized finance (DeFi) or decentralized apps (dApps) to thrive on a blockchain network.

However, BitVM would require an independent auxiliary network on top of Bitcoin to cope with the transaction volume while utilizing the primary network’s security.

With Bitcoin accounting for almost 60% of the digital asset market’s total value, it dwarfs all other networks combined. As such, the prospect of Ethereum-style decentralized projects on Bitcoin could potentially unleash liquidity and value unmatched by any other ecosystem.

Bitlayer’s mainnet has been operational since April, and in that time, roughly 280 projects have launched on it, with a combined value of nearly $300 million, per Monday’s announcement.